Mexico registers its lowest level of inflation in two years

The National Consumer Price Index registered a variation of 4.37% at annual rate in January, a figure below the expected by the survey of analysts consulted by Bloomberg, which anticipated a 4.47%.

The National Consumer Price Index (INPC) recorded a variation of 4.37 percentat annual rate in January, the lowest level since December 2016, when it was 3.36 percent, reported Thursday the National Institute of Statistics and Geography ( Inegi).

The figure was below what was expected by the survey of analysts consulted by Bloomberg, which anticipated a price variation of 4.47 percent. In addition, it was lower than the 4.83 percent registered in December.

Since January 2017, inflation has exceeded the objective of the Bank of Mexico (3 percent +/- 1 percentage point).

In a disaggregated way, it was observed that the underlying component of the index, which only considers the performance of consumer goods and services, eliminating the volatility of agricultural prices and predetermined tariffs such as energy and transport, recorded an increase 3.6 percent annual rate.

The monthly report released by the Inegi revealed that the goods started the year with a price variation of 3.66 percent per year, while the prices of services showed an increase of 3.51 percent compared to January of the previous year.

On the other hand, the non-core component, which is the one that includes the prices of goods and services that are influenced by external factors such as the climate or international markets, recorded a rise of 6.81 percent annually, its lowest level since March. 2017

This rise was mainly driven by agricultural products, as they raised their prices by 7.41 percent, their highest level in 10 months, while energy prices and the rates authorized by the Government continued to show a downward trajectory, reporting a rise of prices of 6.26 percent, which meant its lowest increase since December 2016.

Among the products consumed every day by Mexicans, there were significant increases in the Serrano pepper (67.23 percent), the onion (29.94 percent), other fresh peppers (16.84 percent), bananas (10.2 percent) and the rights for water supply (2.22 percent).

In contrast, Magna and Premium gasoline decreased their prices by 1.9 and 2.4 percent during the month.

By state, the highest inflation rate was concentrated in Acapulco, Guerrero, registering a monthly variation of 1.55 percent, while the lowest price increase was observed in Tijuana, Baja California, with a decrease of 1.54 percent in prices .

In its monthly variation, it registered a level of 0.09 percent, while the underlying component increased 0.2 percent and the non-core component decreased 0.25 percent.